In a 13G filed with the SEC, Thomas Steyer's hedge fund firm Farallon Capital has updated its holdings in Beacon Roofing Supply (BECN). Due to activity on December 3rd, Farallon now has a 5.6% ownership stake with 2,525,422 shares. This is an increase as per Farallon's last 13F filing. As of September 30th, 2009, it owned 945,000 shares. Over the the last two and a half months, Farallon has added 1,580,422 shares, a 167% increase.

For more recent activity out of Farallon head to our post on its portfolio and internal firm adjustments. Thomas Steyer founded Farallon in 1986 and today it is a multi-billion dollar hedge fund that typically invests in equities, private investments, debt, and real estate. Farallon is just one of the 40+ prominent hedge funds we keep an eye on in our portfolio tracking series so head over there to see what other hedgies have been up to.

Tuesday, Beacon Roofing Supply, Inc. (BECN) reported results for the fourth quarter and full-year fiscal 2009. The company reported earnings of 42 cents per share, above the Zacks Consensus Estimate of 38 cents. However, the reported earnings were down 23.6% from 55 cents in the fourth quarter of fiscal 2008.

Quarterly sales declined 14.0% to $487.7 million from $567.2 million last year. Sales were down in all the three major product lines. Residential roofing sales dropped 6.7% as lower volumes more than offset the increase in selling prices. Sales in the non-residential roofing and complementary building products declined 21.2% and 17.8% respectively, due to a significant decline in new construction and remodeling.

F3Q09 Earnings Call

August 7, 2009 10:00 am ET

F1Q09 (Qtr End 12/31/08) Earnings Call

February 06, 2009 10:00 AM ET

Farallon Capital Management, the $30 billion hedge fund firm ran by Thomas Steyer has filed serveral amended 13G's. Farallon invests in both public and private debt, equities, private investments, and real estate. Farallon was ranked third in Alpha's hedge fund rankings in 2008. It is a $30 billion firm and has recently suspended withdrawals from its largest fund after receiving redemption requests for around 25% of the fund's capital. The fund won't be charging typical management and performance fees, but instead, will charge accounting fees. Farallon's recent portfolio performance is available, here. You can also read one of its recent investor letter, here.

First, we'll cover the positions it sold out of completely. Having previously held a position, it no longer shows a stake in these companies:

Apparently not all segments of the housing industry are doing badly. Home Depot (HD) jettisoned its building supply company early on in the housing slump, and USG (USG) has reported poor numbers this quarter.

Beacon Roofing Supply's (BECN) quarterly results bear the Home Depot trend out, but what about USG? Beacon says complimentary building products like nicer doors and decks are not faring well, but people will always need a roof over their heads. From Beacon Roofing Supply’s FQ408 conference call:

F4Q08 Earnings Call

December 2, 2008 10:00 am ET

Most bullies like to pick on smaller guys who often can do little to resist their sheer size and brute strength. The market is no exception and its bullies are the hedge funds and professional traders who typically "gang up" against smallcap stocks.

Yet, as in life, so it is in the market in that it is not the size of the dog in the fight but the size of the fight that is in the dog that counts most. Some of these hedge funds and professional traders may be long overdue for a bloody nose or black eye, and when they pick on the wrong smallcap, this is exactly what happens.

The pain in housing continues unabated. Fannie (FNM) and Freddie (FRE) are knee deep in the muck and are tightening lending standards at the absolute wrong time in the cycle. Even with explicit government guarantees these guys are wrapped in a cloak of fear and doubt.

One of the top indicators that I look at is the Case-Schiller index. I like it because it tracks housing prices in the top metropolitan areas. These are the sections of the country that had the biggest gains and are now experiencing the biggest losses. This is where the real pain is taking place and, when the dust settles, where a killing can be made during the next boom.

Beacon Roofing Supply, Inc. (BECN)

F3Q08 (Qtr End 06/30/08) Earnings Call Transcript

F2Q08 Earnings Call

May 9, 2008 10:00 am ET

Beacon Roofing Supply Inc. (BECN)

F1Q08 Earnings Call

The problem with the economic data, however, is that it continues to point to an unsteady pace of expansion. Job and wage growth slowed in April according to the Department of Labor, yet the Institute for Supply Management’s April manufacturing and services indexes suggested notable improvements in employment. Core rates of inflation are tame, but food prices are higher and prices at the pump are obnoxiously high.